1. business and industrial

INVESTOR FACT SHEET
TSX: CCA┃Q2 2015
CANADIAN CABLE SERVICES SEGMENT
Enterprise
data
services
American
cable
services
16%
21%
•Cogeco Cable Canada is the 2nd largest cable system
operator in Ontario and Québec with 780,000 television
service customers
63%
•Offers Internet speeds of up to 120 Mbps and 250 Mbps in
selected areas, television services and telephony services
to primarily residential customers
Canadian
cable
services
LTM(1) Revenue
$1,993M
LTM(1) Adjusted
EBITDA(2)
$910M
•Television services offer was enhanced through the launch of
the interactive TiVo multi-screen platform in Ontario in November
2014 and in Quebec on March 30, 2015
•Provides Business services to small and medium sized
businesses. We are expanding our sales force and leveraging
fibre-based connectivity in support of enhanced products
to grow market share
AMERICAN CABLE SERVICES SEGMENT
Enterprise value(3)
$6,605M
(Feb 28, 2015)
Market Capitalisation
•Atlantic Broadband is the 13th largest cable system operator
in the United States with 224,000 television service customers
•Offers television services, Internet speeds of up to 120 Mbps
and telephony services to primarily residential customers
$3,666M
(Feb 28, 2015)
Multiple and
subordinate voting
shares outstanding
•TiVo was launched in FY2014 with positive customer
acquisition and retention results
49M
•Provides Business services to small and medium size
businesses. We are expanding the sales team and product
portfolio to target higher-end solutions and grow market share
Cogeco Cable
Secured Debt Credit Ratings
S&P
DBRS
ENTERPRISE DATA SERVICES SEGMENT
BBB
•Leading provider of managed and dedicated hosting
services, cloud services, connectivity and colocation
services operated through Cogeco Data Services and
Peer 1 Hosting(4)
BBB (low)
FitchRatings
BBB -
•Services provisioned through 20 data centres, extensive
all‑optical fibre networks in Montréal and Toronto and more
than 50 points-of-presence in North America and Europe
CORPORATE
OBJECTIVES
AND STRATEGIES
Cogeco Cable’s objectives
are to grow the business,
improve profitability and
create shareholder value
through the following strategies:
•Expand service offerings
and enhance existing
services or bundles
•Improve our networks
•Improve customer
experience and
business processes
•Keep a sound capital
management and strict
control over spending
•We intend to achieve superior revenue growth through
leveraging strategic partnerships, expanding sales
channels, enhancing services and up selling additional
services to customers
INVESTMENT HIGHLIGHTS
•North American geographic diversification and expansion in the enterprise segment increase
growth prospects and reduce concentration risk
--Atlantic Broadband provides an attractive platform in the American cable market where
competition in its existing footprint is generally more fragmented
--The enterprise data services segment offers a higher growth profile due to significant
growth in IP traffic and businesses outsourcing their computing needs
•Internet superiority and effective bundling strategy in attractive suburban and rural markets
•Strong free cash flows
--Revenue growth combined with tight operating cost controls have resulted in increased
operating margins for the Canadian cable services segment
--Recent investments in advanced technological platform should result in reduced
capital intensity in the years to come
CONSOLIDATED FINANCIAL HIGHLIGHTS AND GUIDANCE
In millions of Canadian dollars,
except per share amounts and %
Financial Guidance*
FY 2014
2015E
Growth
2Q14
YTD14
2Q15
YTD15
1,692
1,948
2,050
5%
486
961
509
1,006
Adjusted EBITDA(2)
781
893
935
5%
222
433
231
450
Profit for the period(7)
185
209
260
24%
60
110
59
116
Earnings per share(7)
3.80
4.30
5.28
23%
1.24
2.26
1.21
2.37
Dividends per share
1.04
1.20
1.40
17%
0.30
0.60
0.35
0.70
Capital expenditures(8)
408
415
430
4%
81
166
103
206
Free cash flow(2)
149
275
290
5%
93
161
73
138
Capital intensity(2)
24%
21%
21%
Revenue
FY 2013(5)(6)
* 2015 Guidance was revised on April 8, 2015. 2015E dividend based on annualized quarterly dividend declared on April 8, 2015. The declaration of
dividends is subject to board approval and therefore, there is no assurance that the dividend will be kept at the same level for the rest of the fiscal year.
Please refer to “Caution about forward-looking statements” below.
BUSINESS SEGMENTS
Canadian Cable Services
In millions of
Canadian dollars
Revenue
Adjusted EBITDA
FY
2014
American Cable Services
2Q14 YTD14 2Q15 YTD15
FY
2014
Enterprise Data Services
2Q14 YTD14 2Q15 YTD15
FY
2014
2Q14 YTD14 2Q15 YTD15
1,255
313
623
314
629
392
98
191
116
223
303
75
149
80
156
641
158
312
159
319
173
42
85
50
97
103
25
53
28
54
Note: This Fact Sheet, which includes non-IFRS financial measures, should be read in conjunction with the detailed disclosure contained in Cogeco
Cable’s 2014 annual report.
(1) Last twelve months ended February 28, 2015.
(2) Non-IFRS financial measures: Adjusted EBITDA, capital intensity and free cash flow are non-IFRS measures and reconciliation to the most
comparable IFRS measures can be found in Cogeco Cable’s 2014 annual report.
(3) Enterprise value defined as market capitalisation plus indebtedness, as defined on page 4 of the 2014 annual report, less cash and cash equivalents.
(4) Peer 1 Hosting refers to Peer 1 Network (USA) Holdings Inc., Peer 1 (UK) Ltd. and Peer 1 Network Enterprises, Inc.
(5) Atlantic Broadband was acquired on November 30, 2012.
(6) Peer 1 Hosting was acquired on January 31, 2013.
(7) FY2014 results include impairement on property, plant and equipment of $35.5 million, before tax adjustments.
(8) Capital expenditures is defined as acquisitions of property, plant, equipment, intangible and other assets, including assets acquired under
capital leases.
Caution about forward-looking statements
Certain statements in this Fact Sheet, including, but not limited to, the statements appearing under “financial guidance” and Cogeco Cable’s
corporate objectives and strategies, constitute forward-looking information within the meaning of securities laws. These statements are based on
certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which are
reasonable as of the current date. While we consider these assumptions to be reasonable based on the information currently available to us, they may
prove to be incorrect. Forward-looking information is also subject to certain factors, including uncertainties and main risk factors which are described
in Cogeco Cable’s 2014 annual report that could cause actual results to differ materially from what we currently expect.
Corporate information: www.cogeco.ca/cable/entreprise/cca/main.html
Investor Relations Contact
5 Place Ville-Marie, suite 1700
Montréal, QC, Canada H3B 0B3
Patrice Ouimet
Senior VP & CFO
514-764-4756
[email protected]
Andrée Pinard
VP & Treasurer
514-764-4781
[email protected]